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Texas House Passes Controversial Ban on Hemp-Derived THC Products

News Summary

The Texas House has voted 87-54 to ban hemp-derived THC products, sparking concerns about job losses and economic impacts on local businesses. Advocates are calling for regulation instead of prohibition, stressing the importance of a balanced approach to safety and industry growth. The decision could threaten the booming $5.5 billion hemp market in Texas, affecting thousands of jobs and the livelihoods of many entrepreneurs. The bill now awaits the governor’s signature.

Texas has taken a significant step towards regulating hemp-derived tetrahydrocannabinol (THC) products by passing a ban that could impact thousands of businesses and jobs across the state. The Texas House of Representatives approved the ban with a vote of 87-54, and it is now set to go to Governor Greg Abbott for final approval following some minor changes.

The legislation specifically targets THC, the psychoactive component found in marijuana, impacting a wide range of products including gummies, edibles, and beverages. Proponents argue that the ban aims to protect consumers from retailers allegedly selling products with dangerously high THC levels, particularly to minors.

Critics of the ban, however, are warning of serious economic repercussions. The hemp-derived cannabinoid industry in Texas is valued at around $5.5 billion and employs over 53,000 workers, generating approximately $2.1 billion in wages statewide. More than 8,500 license holders are currently involved in this industry, which spans a variety of businesses from vape shops to coffee shops.

Market consultants express concern that the ban could lead to the closure of numerous establishments in North Texas, threatening the livelihoods of many. Business owners have reported a surge in customer purchases as consumers fear the potential loss of access to these wellness products.

The proposal initially passed in the Senate in March, paving the way for the House vote. While the ban permits exemptions for non-intoxicating hemp products, such as CBD, its broader implications could restrict access to a wide array of therapeutic options sought by many Texans.

Opponents emphasize that this decision undermines Texas’ reputation for supporting business and innovation. They argue that the focus should be on creating regulatory measures that prioritize safety without resorting to an outright ban. Some business owners, including industry veterans, are advocating for regulations to ensure responsible practices rather than limiting consumer access to beneficial products.

The ongoing discussion around this ban follows years of increased sales in the hemp industry since the legalization of hemp products in 2019, attributed to both federal and state laws. As the final vote approaches, the outcome remains pivotal for the future of the hemp market in Texas.

Supporters of the ban, including Lt. Gov. Dan Patrick, highlight safety concerns, particularly regarding products marketed towards children. They argue that without regulation, hemp-derived THC products pose risks that could lead to unintended consequences for impressionable consumers.

Should the ban be finalized following the Governor’s signature, many businesses, like the CBD Dallas House of Healing, fear they may not survive the transition. The economic impact and job losses could resonate throughout the state, challenging Texas’ standing as a pro-business environment while limiting consumer access to various wellness products that many rely on for their health.

The Texas government is now faced with balancing safety and consumer access as the ban heads for final approval. The next steps will determine whether the state’s growing hemp industry will continue to flourish or face significant setbacks due to regulatory changes.